Question: According to the inventory policy declared in footnote 2, do the following calculations for KHC's hot product- 910g Heinz Tomato Ketchup : Suppose cost inflation
According to the inventory policy declared in footnote 2, do the following calculations for KHC's hot product- 910g Heinz Tomato Ketchup : Suppose cost inflation was 15%, compute Cost of Goods Sold, Ending Inventory, Gross profit ,Gross profit margin and other measures in thick borders . Please round your answers to 2 decimal places.Suppose in FY2021 cost inflation climbed to 20% instead of 15%, what is the gross profit margin of 910g Heinz Tomato Ketchup given the inventory.
| 910g Heinz Tomato Ketup | Units (millions) | Cost/Price per unit | Total Cost | cost inflation rate | ||
| Inventory available at the beginning of FY21 | 100 | 3.10 | Scenario 1 | 15% | ||
| Inventory purchased during FY21 | 60 | Scenario 2 | 20% | |||
| Unit sales in FY21 (in millions) | 120 | |||||
| Price per bottle of 910g Kraft Heinz Ketchup | 5 | |||||
| Net sales in FY21 (in millions) | ||||||
| COGS in FY21 (in millions) | ||||||
| Ending inventory for FY21 | ||||||
| Gross profit (in millions) | ||||||
| Gross profit margin | ||||||
| Gross profit margin when input inflation rises to 20% | ||||||
| Gross profit margin change vs scenario 1 | ||||||
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